Upon returning home at war's end, a young lieutenant discovers that his family has been murdered by the Nazis. It's all the handiwork of a treasonous "Chetnik," who during the war worked against the partisans on behalf of the Germans. In bitter retaliation, the lieutenant sets about to decimate the Chetnik's family. He stops short, however, when he realizes that the sins of the fathers are not always passed down to the innocent children.

Two boys, Kekec and Rozle, come to serve a farmer, with a blind daughter Mojca, as shepherds. As the night falls, the two boys start talking about a woman who lives in the mountains and is supposed to steal children. Her name is Pehta. In the morning, Kekec, Rozle and Mojca go to an Alpine cottage and Kekec promises Mojca that he will find her a remedy for her eyes. As the girl is picking flowers, Pehta arrives and takes Mojca into her cottage. She wants to keep Mojca because of her singing.